ERIC slides to lowest close since May 17th
Ericsson (ERIC) Technical Analysis Report for Jun 14, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, ERIC ended the week -5.21% lower at 9.46 after losing $0.14 (-1.46%) today, significantly underperforming the S&P 500 (-0.16%). Today's close at 9.46 marks the lowest recorded closing price since May 17th. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ERIC as at Jun 14, 2019):
Friday's trading range has been $0.09 (0.95%), that's below the last trading month's daily average range of $0.14. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for ERIC.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on March 29th, ERIC gained 1.96% on the following trading day.
After trading as low as 9.39 during the day, the stock found support at the 100-day moving average at 9.43. Prices are trading close to the key technical resistance level at 9.51 (R1).
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Ericsson. Out of 26 times, ERIC closed higher 69.23% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 61.54% with an average market move of 0.97%.